you the taxpayer have spent $150 billion to bail out fannie mae and freddie mac and just last week, that$50 million to fannie and freddie executives. they have been investigated for cooking the books and unusual twist you have to pay their lawyers whether they scammed you. how can they be asking for more of your money? what if the taxpayers don't give them the money they want? >> that is not possible. because there a law on the books that these two have an unlimited pipeline into the u.s. treasury. so they can basically come with a tin cup to the regulators and say they need more money and get it. >> greta: is there any sort of incentive for them to be efficient or competent or have any great vision or conservative in how they spend the money? >> i don't see that at all. i've been through fannie mae and freddie mac's filings and cost to bail them out is going to $190 billion. this is biggest that goes up with aig. so essentially what you are seeing, fannie mae and freddie mac are both in protective custody of the u.s. federal government. what is dangerous for taxpayers you are being used

fannie mae and freddie mac. on april 2, the national archives will make record from 1940 available to the public. thomas mesenbourg and connie potter will talk about the release. >> good morning. it is friday, march 30, to tell of 12. you are watching c-span's -- 2012. you are watching c-span's "washington journal." we are going to review the week and look at some of the top headlines. we will open up our phone line for you to comment on the stories that you are most watching. we'll start the week in review -- this is how you join in. the democrats are 202-737-0002, republicans 202-737-0001, our independent line is 202-628- 0205. a good friday morning to you. for a quick review of some of the big stories coming out of this town, here are some of the headlines we have been watching here at c-span. for to vall, three days of oral arguments on the health care challenge. on capitol hill, the house gop passed its 2013 budget along party lines. also, a standstill over the transportation bill with the 90- day extension

obligations andeld fannie mae and freddie mac mortgage backed security the company itself was now sort of in a partial bankruptcy but the u.s. government now guaranteed. so that protected those investors. that had to be done or else there would have been an enormous intensification of the crisis because investors all over the world held literally hundreds of billions of those securities. famously in the mid. september, lehman brothers a broker dealer, and i'll talk more about this, i have a case study on this coming up. had severe losses. came under great pressure. couldn't find either anybody to buy it or provide capital for it. so on september 15th it filed for bankruptcy. on the same day merrill lynch was acquired by bank of america. again, basically saving the firm from potential collapse. on september 16th the next day aig, the largest multidimensional insurance company in the world had, if you remember, had been selling the credit insurance, came under enormous attack from the people demanding cash either through margin requirements or short term funding. the fed provide eme

the mortgage giant and its twin freddie mac one of the most expensive ever.y 190 billion dollars. do you remember the headlines from july of 2008. sbo saying it could cost taxpayers 25 billion dollars. toby, we keep bailing out the bailouts, huh? >> of course we do. a, we're bailing out the lines that they tried to sell us in 2008. we thought 200 billion. we're underestimating it. number two, bailing out the bailouts because there are jennie mae and others we haven't talked about. and they're lying to our face and anybody doing the math, this is what's going to happen when you bail out a bailout. >> brenda: why shrink when you know you're getting more money from uncle sam? >> absolutely. this is like bailing out in a sense part of the government. the government-sponsored enterprises, look, if you're working at fannie and freddie mac, rather, your whole mission in life is to grow your power base, you don't care about the bottom line, you care about growing bigger and bigger and bigger. that's exactly what the companies are doing. they want more and more money.

from freddie mac to the big mac, what do sleep and the iconic hamburger have in common?ger theme going today, don't we? your health could depend on it. the answer next. the next revolution in music is happening here. pandora rocks the big board. jenna: new next hour, the latest on standoff in france as police surround a building where a suspect in a deadly school shooting is holed up. you're looking at live pictures there on the scene. greg palkot is on the ground. he will have a live report for us coming up. >>> also rick santorum campaigning ahead of a primary in his home state. why pennsylvania might not be a sure thing for the former senator. >>> plus a convenience store clerk attacked on the job. the whole thing caught on tape. more on that, coming up. jon: you don't want to pack on the pounds? who does. in addition to hitting the gym, you do that all the time, hitting the gym, you might want to hit the sack. a new study finds that folks who sleepless, eat more. in fact, get this, they consume about 540 calories more per day, that is roughly the equivalent of eating

fannie mae and freddie mac are back in the spotlight. the inspector is opening an investigation into trouble spending at the government and companies last year. lawmakers complained they spent over $600,000 to send workers to a conference last october. half the money was of questionable value. fannie and freddie have drawn $190 billion in taxpayer aid so far. starbucks has a new way to perky up. it has nothing to do a copy. i have more coming up in the next hour. >> 436 is the time. 59 degrees. >> we're getting a look at a key piece of evidence in this week's attack of a teenage girl in fairfax. what police have a homeowners to thank. >> in new controversy in mitt romney's campaign. what it has to do with it at a sketch -- etch a sketch. >> it is thursday morning. we're here in the weather center with a very foggy start to our day. just like the past couple of mornings we have the dense fog and advisory. it is in effect for the majority of the region, especially the east of the blue ridge. it goes through the morning until 10:00 a.m. the

the first people are more familiar with the failure of fannie mae and freddie mac, the government mandate that banks make bad loans for houses and how that led to the and it's a crisis. and then the question of how the obama administration, the latter part of the bush administration reacted to that with bailouts and the stimulus funding. difference stimulus packages, not just the big one we generally think of. why that actually made the recession worse and the recovery weaker and creating a fewer jobs, increasing gdp less than other countries which did not do stimulus spending and that our recovery is weaker than previous recoveries because -- you can compare what we are going through now with the reagan recovery, the for recovery, recoveries back to the great depression, or you can compare it with other countries that are going through what we have been going through the last several years. in both cases the obama recovery is weaker, less strong, and in some cases bizarrely weaker than what has happened in the past. why? well, unlike reagan who got a deeper recession in terms of destruct

>> i think support of the bank bailout receiving money from fannie mae and freddie mac really precludesng him. tea party was started because republicans voted for this bank bailout of wall street. for him to actually get paid to support is non-starter for most tea party folks. >> look, i know ron paul. i served with ron paul. i think ron paul is a friend of but every time i have been in the congress with ron paul he has consistently voted no on everything. wait a second. wait a minute. every congress needs one ron paul, you can't have more of them. there is a difference between being a member of congress where you are in the permanent minority always voting no and being a president of the united states just as newt gingrich went beyond the position of the loyal opposition to leading the loyal opposition to being the majority and forcing bill clinton to accepted balance budgets. forcing bill clinton to have welfare reform. you have to lead this country. you have to have ideas and be able to accomplish something. >> what do you want to make up your minds? what do you want in the next few

go back to july 14th, 2008 when congressman barney frank oversight authority on fannie mae and freddie mac said this. >> i think this is a case where fannie and freddie are fundamentally sound. if they are not in danger of going under, they are not the best investments these days from the long-term standpoint going back. i think they are in good shape going forward. they are in the housing market. i do think their prospects going forward are very solid. in fact we are going to do some things that are going to improve them. >> bill: shoe you are, barney, sure you are. obviously frank was wrong then he lied about it on this program and i scolded him. we don't need to replay that again i'm sure you remember what happened. combine freddie fan and freddie mac received $150 billion from the treasury department. again, it's not enough. fanny wants more. then there is another looming green disaster. you already know about solyndra which cost the american taxpayer $500 million. but you have heard about abound solar based in colorado? nearly two years ago president obama said this. >> today i'm anno

>> i think support of the bank bailout receiving money from fannie mae and freddie mac really precludesdering him. tea party was started because republicans voted for this bank bailout of wall street. for him to actually get paid to support is non-starter for most tea party folks. >> look, i know ron paul. i served with ron paul. i think ron paul is a friend of but every time i have been in the congress with ron paul he has consistently voted no on everything. wait a second. wait a minute. every congress needs one ron paul, you can't have more of them. there is a difference between being a member of congress where you are in the permanent minority always voting no and being a president of the united states just as newt gingrich went beyond the position of the loyal opposition to leading the loyal opposition to being the majority and forcing bill clinton to accepted balance budgets. forcing bill clinton to have welfare reform. you have to lead this country. you have to have ideas and be able to accomplish something. >> what do you want to make up your minds? what do you want in the next

at the same time it is slashing salaries, freddie mac is begging for more cash.ox business network rich edson is live in d.c. exactly what does freddie want, rich? >> good evening, shep. this time freddie mac has requested 146 last supported cousin fannie mae asked for $146 million. they have borrowed it hundreds of billions, shep. >> shepard: all right, rich. how much were these executives making and why the cuts? >> well, officials say over the past two years the ceos of fannie and freddie made a combined $17 million. they're leaving and the government says those replacing them will earn a target of a half million dollars each. their regulator is imposing the caps. he says they can't go much lower because a sudden and sharp change in pay from these levels would certainly risk a substantial exodus of talent. costly operational failures, would in my opinion, be highly likely. they are managing trillions of dollars worth of mortgages here though others in washington have argued the president, treasury secretary and fed chairman have demanding and complicated jobs

this is from freddie mac in 1984, and these are the unknowns. that man, the cfo of freddie mac on how to use securitization. these new mortgage-backed securities offered something to the 1%. it offered them a safe place to put their money and get a little extra on the side and in this moment supply created demand first for mortgages and then for credit card debt furnished by these folks. how could one company start an industry? the help can from the gnomes. the associate. if i saw this it wouldn't make me want to invest in freddie mac securities. it is terrifying. but it would be funnier i think if it didn't end in tragedy. these developments were not inevitable. it wasn't the knowns that made mortgage-backed securities after all. it was government policy, it was business policy and ultimately it was us allowing it all to happen, and in doing so it became easier to invest in my credit card debt of them in small businesses. i want to give you a sense of the very first mortgage backed securities and where it came from as well. this is the advertis

none of them can actually force refinance however ed demarco this guy can since fannie mae and freddie mac. are currently backstopping all of these mortgages in america including more than three million underwater mortgages it's up to those two agencies to sign off on reef eyes since they're the ones who are primarily take it i mean it's up to ed to marco as the head regulator of fannie and freddie and the market was saying no way basically tomorrow is saying this is his job is to clean up the books at the mortgage giants he shouldn't be letting them spend money on refinancing plain and simple he's looking at the bottom line in the ongoing housing crisis is like refusing to put out a fire in your kitchen with water from your sink because you don't want your water bill to go up and despite all the pressure coming from the obama administration coming from congressional democrats who are collecting eighty five thousand signatures in a petition they have to marco removed from office and marco isn't budging it's as though he got his marching orders from mr our job is to make obama a one term pr

we've got fannie mae and freddie mac losing $6 billion a quarter of your money.nd what do they want to do? they want to expand another government bank. so get this right. the fannie mae and freddie mac that are government banks are losing $6 billion a quarter. just recently they wanted to give them multimillion dollar bonuses. they said, well, you've got to pay people if you want to keep good talent. you know, my question is, is how much talent does it take to lose $6 billion a quarter? i think there are people here today watching the senate that would take $19 million a year to run one of these government banks to have your only record be that you lose $6 billion a quarter. that's outrageous. and they're wanting to expand a new government bank and give money to very wealthy corporations that are making a profit. it makes no sense whatsoever. >> senator rand paul made his comments on the senate floor earlier in the day. meanwhile, the senate democratic leader harry reid attacked the house republican leader eric cantor on this issue for his demand -- this is from

that's becauss most are not bank that issued their either to fannie mae or freddie mac or to investors held by thh banks &pann some of their investors will be modified. the rest of the borrowers will bb left out in the cold.for busiiess p-----nd-----cnn.sc overseas didn't keep him away. away.how this soldier was there... for hissbaby's birth. birth.city workers caught drinking and gambling on the &j investigators on exactll what on.

also supporting the call for the suspension of foreclosures of loans controlled by fannie mae and freddie mac and to provide for a principal reduction to keep families in their homes. a resolution also urges all city and county officials and departments to work proactively to insure that san francisco residents do not fall victim to unlawful foreclosure practices and most importantly, is calling on banks, especially wells fargo, to suspend foreclosure activities until such time the state and federal measures are in place to protect homeowners from unfair and unlawful practices. i come to this -- work on this legislation with many community groups from across san francisco. there is the california air with reinvestment coalition, residents from our different districts, and we are facing a crisis even here in san francisco. it has now -- not always been recognized we have a foreclosure crisis. often in california we talk about the central valley as having a crisis in foreclosures but there aretwo but -- there are to be together district and neighborhoods that have a high level of foreclosures,

jenna: well, growing outrage over executive pay at fannie mae and freddie mac, and now we're seeing someess network's rich edson is live in the washington with more on this. rich? >> reporter: good afternoon, jenna. fannie mae and freddie mac combined are still losing money, and taxpayers are still keeping them in business, so far for a total of $180 billion. meanwhile, last year their chief executives combined earned just shy of $10 million. those executives are on their way out, they're leaving fannie and freddie once the government-supported companies find replacements. and now fannie and freddie's government regulators say officials have set limits for whoever takes over, a target of $500,000 a year in pay. the chairman of the house financial services committee says it's about time. in a statement he writes: the lavish compensation packages, million dollar bonuses that have been given to top executives in these two failed companies are an outrage to those taxpayers whose assistance is the only thing keeping fannie mae and freddie mac afloat. though one analyst and former federal hous

this is an exception to the rule that any lender, freddie mac could have made an exception.way. they knew the story. they knew what her losses were. they knew this wonderful person that was going to allow her to stay in that home and rent it back to preserve her memories, and they looked the other way with no heart, with no compassion. it is sickening. >> gretchen: karen, i know what people may not understand is that your husband, your ex-husband had filed for bankruptcy, so that put new a difficult situation with being able to pay the bills. you also had to pay for the funerals and the attorneys' fees for the divorce from your now deceased ex-husband. so you were already facing financial straits. correct? >> that's correct. yes. >> gretchen: now, this good samaritan who came forward, that must have been a godsend to you at that time because you thought, well, at least i'll be able to stay in my home? >> i thought it was a wonderful idea. i thought it was very, very kind. i don't know who this person was but that situation didn't work out. >> gretchen: she's going to be movi

>>neil: but fannie mae and freddie mac were kept out of that.uest: they agreed to the standards but they agreed because everyone had something to gain from doing it and when is the last time you saw 49 state attorneys general, republican and democrat agree on anything. >>neil: but here is what confused me about that deal. for those who are robo signed out of their homes, for example, i think they get $1,500 or $2,000 check for what they went through but it applies to everyone forced out. how do you distinguish? people hearing this are saying, wait, that is not right. >>guest: i am glad you asked because there is confusion. we did a lot of investigations here and most of what we found was that someone had their paperwork lost and they had to pay an extra month, maybe some fees were charged, and most of the damage was not people lost their homes because they should not have but it was something that could have cost them $1,500 or $2,000, it was lick a -- a class action. >>neil: you did not see a difference, right? did everyone, or will get somethi

right now, 75% of mortgages are guaranteed by either fannie mae, freddie mac, or the federal housinga moratorium on foreclosures based on the emergency provisions that he is empowered to enact. i believe the state governor should do the same and the city of san francisco should do the same. i was out -- at a demonstration at the bayview on friday. it was very impressive. 100 people came out in the rain. a longshoreman, his home was being fraudulently taken from him. i believe i have seen the study in which 90% of the foreclosures being done in the u.s., there is one irregularity or fraudulent part of it. thank you. president chiu: thank you. next speaker. >> hi, i am morning star, a resident and voter. i have lived in my apartment since 1985 during the aids epidemic. i lost all my neighbors through aids and i am the only one alive who is still there. a year ago i came to you because i needed help. i have not been slipping for a long time -- sleeping for a long time because it is too noisy. there are 22 restaurants, that is too many. there because of public health because -- they're n

actions against goldman sachs, p and freddie mac, and more than one of of the. this division also realized significant gains from its aberrational performance inquiry, another collaborative effort that. this morning, we charged four hedge fund in razors meeting asset and materially misled and harmed investors. oc risk and enforcement are now working together through different analytical issues, and that he see being again to detect fraud. with clearly call direct line in rur ruring took the time to survey a group of firms who were adequately communicating through essential media. in prot, getting a sense of those who were legitimate and those who mighten. in short order, the ensuing is he was in specific securities, through jez he will. again, the agency asked before investors were harmed, we sued the adviser last month and effectively called it a fraud. rather than just enforcement tomorrow, the yes. management dwing. as our firm shuts down, we have some questions, one that will help consumer products keep it on a client. it's hard to know how many will save yo

we should have gotten control of fannie mae and freddie mac, and for the person who proposed this bill, to say that we have underfunded the cfpb and the sec flies squarely in the face of the facts. hilo hugo party heard the facts. mandatory spending on the cfpb is going to be $5.5 billion. the sec funding has gone up as you heard i 77% and got unelected bureaucrats that made close to $200,000 a year, four times the average american salary. this is not the solution. the solution is to repeal dodd-frank and put in regulations to make fannie mae and freddie mac be accountable and with that i yield back. >> the gentlelady is recognized for one minute to close. >> thank you mr. jan thank you colleagues. i do want to say that i agree with my colleague on the other side of the aisle who said it's important to return to the rule of law and that is exactly withism and does. is critical that we support this important amendment to the sec in the cfpb. as transactions have become more and more complex is important for consumers to be able to understand them and the cfpb is doing important work of

freddie mac says the average rate on a 30 year fixed mortgage now stands at 3.9%, just above the record low of 3.87% we hit two weeks ago. >>> more violent weather could be headed to parts of the midwest and south already ravaged by tornadoes in the last two days. skies were sunny in harrisburg as people scrambled to clean up what they coof the damage. six people died in that southern illinois -- could of the damage. six people died in that zorn illinois town when an ef4 twister hit. another series of storms could hit that region overnight. >>> ahead students ban together as one of their classmates learns if he'll face charges in a deadly shooting at their school. >>> sign of solidarity today at the ohio school where five students were shot earlier in the week. hundreds of kids marched to chardon high school this morning. they held hands. some cried as they walked from the town's main square and many wore their school colors plaque and red. once they arrived at the -- black and red. once they arrived at the school they sang its alma mater. then the family of some of the victims made a p

according to freddie mac, the average interest rate for a 30- year fixed rate mortgage rose to 6.8%. rates will be above 4%. still very low. the average for a 15-year mortgage jumped as well and it is now 3.3%. >>> up next, the video outburst in the college classroom that will be going viral. so now what did you do if it happens to you? experts will be weighing in. but first here is a quick preview of tonight's cbs news. >>> we have learned that the massacre in afghanistan t will be worse than what we knew and charges are next against the u.s. soldier. that story is tonight on the cbs evening news. >>> back on 9news now, that's the reknown physicist at the university of maryland and an expert on super strength theory. so now what he is doing at the middle school in d.c.? inspiring young minds. he engaged in a nationwide effort aimed at getting more kids interested in careers of science, math, engineering. all to look at the shortage of students that are now choosing the career path. >>> tonight, a viral video from the florida university, they have people here in d.c. wondering. if ou

according to freddie mac, the average on a fixed year mortgage fell to a record low. >>> the u.s. justice department may be close to bringing a lawsuit against apple and some book publishers over alleged (e) books. the justice department accuses the companies to clued to keep prices high a resolution or settlement could potentially leep lead to cheaper e books for consumers. >>> reports within the past hour say a mother whale and her calf are now between fort mason and alcatraz island in san francisco bay. news chopper 2 caught sight of the gray whales yesterday. authorities remind boaters and swimmers to stay away from the whales because the marine mammal act protects them and you can be cited for getting within 300 feet of the whales. >>> the u.s. coast guard is set to hold its first public meeting on the america's cup. the big yatch race is still more than a month away but the coast guard wants everybody to note safety rules. the meeting begins at 6:00 at jack london square. >>> parents want a principal removed from a hercules elementary school where a student was sexually assa

the spring home buying season gets underway and freddie mac says the average mortgage is now at a record 3.1%. the 30 year mortgage rate is at 3.9% and the average 30 year rate has been below 4% for more than three months. >>> the threat of a lawsuit could lead to cheaper e-books for consumers. sources tell the wall street journal the department has issued a warning to apple and the publishers. a similar class action lawsuit is already underway in new york. law makers claim that apple and publishers change the way e- books are priced so publishers dictate what retailers could charge. >>> a new report paints a bleak picture for air travelers. they predict continued mergers between air carriers will shrink the number of flights available. experts say that means fewer seats for more passengers. >> 25 years ago the most flights in the u.s. were 60% full. today that's closer to 85% full. >> airlines say their fairs are rising more slowly. >>> a little more user friendly for nonenglish speaking customers. details on the utilities latest policy change in six minutes. >>> now to oakland where a

what developed quite a while ago, beforeç security, mortgag- backed securities, fannie mae, freddie maca peer the antiquated system that has not kept up with the changes in the industry. i think what this report shows is that the system is completely broken, for us, as county recorder, the mortgage industry, the system is broken for consumers. we have plenty of laws on the books but they are clearly not being followed. equitas reviewed this together with us. each of those records show at least one clear violation of the law. çanother percentage applied to suspicious activities. that is like backdating documents. not a violation of law, but odd when you submit documents that are backdated two yearsok prior, submitted on behalf of the agencies that no longer exist. almost every single document we reviewed of the 2405 foreclosuresç between january 2009 and november 2012 showed that. a sample of 382 documents between -- of that total -- 2405 foreclosure sales. the main challenge we face is we want to ensure, asñr reporters, that we have a clear and transparent title process. i think we ow

gretchen morgenson looks at freddie may and freddie mac to discuss after the expiration of washington journal on c-stan. >> follow c-span throughout the week. explore the literary and literary culture. >> you had calls going up and down the mississippi delta and the next morning between 600 and #,000 men, white men pour into phillips county to begin shooting down blacks. >> and on american c-span 3, bruce lindsay on integration and north little rock high school. they seem to because the crowd is with us now. the momentum is behind us. >> these stories and others in little rock. this weekend on c-span 2 and 3. >> ronald reagan was living this hotel after delivering a speech. he's this close. he's 15 feet from the president. he shoots, six shots. the first one hits the press secretary brady in the head and falls down. the second one tissued around to check on the president's progress. he yells, i'm hit. the path of the president is clear, wide open. hinckley has a clear view. >> march 30th, 1981, firing six shots. and on american history tv, this weekend on c-span 3. >> the second anniv

the vast majority would be freddie mac, fannie mae, fha. >> reporter: she says closing doesn't -- she says foreclosing doesn't benefit the bank any more than it does the homeowner. >> they will work with that person and have face-to-face connection. we are seeing great trends two out of three is getting some kind of option. >> reporter: it looks like his remodification is going to work out. >> we've been able to work through the process, explain it to me, him and his manager had really good ideas and they shared them which is different than what i had gone through over the telephone with what some of the representatives. -- with some of the representatives. >> reporter: i would be remiss if i didn't mention a dissatisfied customer he is current on his payments he was here to get his interest rate lowered he said he was told he did not qualify. until 7:00 tonight and from a.m. until 7:00 tomorrow you can still come down even if you didn't register, walk-ins are welcome. katie marzullo, abc7 news. >>> still ahead, food safety. >> how you can get alerts on a real-time feed. >>> it is wed